Worlds Inc, VirtnetX and MaxSound
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Institutional Analyst Inc, Tuesday 12/13/2016
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Patent Stock Review
1. Worlds Inc (WDDD). USPTO Review Validates 6 Worlds Inc. Patent Claims -Activision.
2. VirnetX (VHC). Federal Circuit Issues Decisions - Apple.
3. MaxSound (MAXD). CEO Update - Google, Netflix.
4. Disclaimer.
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Patent Stock Review
We mothballed the Patent Stock Review in 2014 after having great success with VirnetX (VHC), Vringo (VRNG), Sphirex (SPEX) and a number of others and after when the respect for intellectual property rights from representatives of all three branches of government, flew out the window. Leaving in the wake dozens of positive rulings and awards being overturned and horrific market performance for the group as a whole.
But we still follow the group and post interesting news items on the Patent Stock Review Magazine website. We have this nagging feeling that one big win for the patent holders which is followed by an avalanche of licensing deals for the patent holder and a patent holders' stock price that runs 10-folder higher (key) - that money will come back to the group. And all boats will rise.
In the past month we saw two nice new releases from World's Inc (WDDD) and MaxSound (MAXD) and one not so nice release from VirtnetX (VHC) which in our opinion has kept a ceiling on the upward move of the two former.
Could either Worlds Inc or MaxSound be the play which turns investors perception of the group? Only time will tell - and we don't think it will be years to get that verdict.
Out thinking is if everything goes right for Worlds and the stock goes from $0.040 to $0.40 and/or if everything goes right MaxSound and the stock goes from $0.02 to $0.20 that there will be a flood of interest in the group and we'll reopen PSR. And then you'll see a flood of patent attorneys doing reverse mergers to take their law firm (or infringement suit) public and everything will be fun and good again !
Here is the news, chronologically. Both World's and MaxSound appear to be in the late innings of their infringement ball-game.
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Worlds Inc (WDDD). $0.04
First in August - when the shares were trading around $0.03, the company announced that it had retired the balance of its convertible debentures and arranged funding from key shareholders.
CEO Thom Kidrin stated "The repayment of our outstanding convertible debt obligations allows the Worlds to move forward without the highly dilutive uncertainty of the debt conversion we have seen over the past few months. Some of our key shareholders have provided funding to retire these convertible debt obligations and the necessary funds that we expect to be sufficient to carry the company through the US Patent and Trademark Office (USPTO) Oral Arguments and subsequent Patent Trial and Appeal Board (PTAB) ruling that are expected before year's end."
We're not sure exactly who those shareholders were but we did see in SEC filing that Morris Smith who ran the Magellan Fund (we assume this is the same Smith) was listed. It could have been him. Interesting.
Then 12 days ago on December 1st, Kidrin announced that a USPTO review validated six of Worlds patent claims. This ruling allows Worlds to resume their federal court case against billion giant, Activision.
Kidrin stated "In the five years since starting litigation against Activision et al, we've overcome the numerous challenges they've raised against our intellectual property (IP). We've already received a favorable Markman ruling, as well as overcame the Motion for Summary Judgment and lawsuit by Activision in California. Once again our IP has been validated and we are renewing our commitment to pursue those infringing upon our patents."
Legal team is Susman Godfrey L.L.P. and Davidson, Berquist, Jackson & Gowdey, LLP.
(Despite the recent struggles, it never gets old watching these heavily awarded and pedigreed law firms from both sides duke it out.)
Full News.
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VirnetX (VHC). $2.28
On December 9th, we read the following.
"We are disappointed by and disagree with the Federal Circuit's decisions affirming the Patent Trial and Appeal Board," said Kendall Larsen, VirnetX CEO and President. "However, we are heartened by the strong dissent in one of the appeals. We are evaluating all of our options, including potentially seeking rehearing en banc."
The company noted that it has two currently-pending patent infringement lawsuits against Apple Inc., and that none of the patents considered in these decisions are at issue in the Apple I or Apple II cases pending against Apple.
Full News.
This is in contrast to happier news a couple months ago of VirnetX being awarded $302.4 million from Apple.
MaxSound (MAXD) $0.02.
Last night we came across a very well written and eye-brow raising CEO update from MaxSound a small audio processor and former client back in better days, when it ran from near $0.25 to a high of $0.75 a few months later.
By no means, base a trading decision on the following excerpts on their own..
Full News.
German Court Action
On December 7, 2016 an offer was made to settle by Google and Netflix in the final hours of the day prior to the hearing in Germany, concerning the entire global patent portfolio. The VLL steering committee decided the offer required further consideration and significantly more detail around the terms and suspended the negotiations so not to jeopardize the value of the overall portfolio (specifically including the US).
On December 8, 2016 both parties presented arguments in the Nullity proceedings in Munich, Germany. The court will issue its written ruling early 2017. The VLL steering committee intends to continue negotiations with all parties concurrently. Further details will be provided in the very near future.
The Legal Team
MAXD's attorneys in the United States agreed to handle the US lawsuits against Google on a contingency fee, reflecting their belief in the strength of MAXD's patent infringement claims. Together, we feel justice will be served, and MAXD and our Shareholders will prevail! Legal advisors of MAXD in the United States: Buether Joe & Carpenter, LLC
Additional Case Against Google
Our case number "2014-1-cv-274103" has made significant progress. Stay tuned for an update and possible resolution on this matter in late January 2017.
Full Release.
Website: MaxSound
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DISCLAIMERS. Past performance is no indication of future performance or inkling into future performance.
WDDD, This release contains certain forward-looking statements and information relating to Worlds Inc. that are based on the beliefs of Worlds' management, as well as assumptions made by and information currently available to the Company. Such statements reflect the current views of the Company with respect to future events including estimates and projections about its business based on certain assumptions of its management, including those described in this Release. These statements are not guarantees of future performance and involve risk and uncertainties that are difficult to predict. Additional risk factors are included in the Company's public filings with the SEC. Should one or more of these underlying assumptions prove incorrect, actual results may vary materially from those described herein as "hoped," "anticipated," "believed," "estimated," "should," "preparing," "expected" or words of a similar nature. The Company does not intend to update these forward-looking statements. Not a client, yet.
VHC, See Press Release. Not a client.
MAXD, Statements in this press release which are not purely historical, including statements regarding Max Sound's intentions, beliefs, expectations, representations, projections, plans or strategies regarding the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risks associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow or adequacy of capital resources, market acceptance risks, technical development risks, and other risk factors. The company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Max Sound disclaims any obligation and does not undertake to update or revise any forward-looking statements in this press release. Expanded and historical information is made available to the public by Max Sound Corporation and its Affiliates on its website. Not a client, currently. Compensated with 400 thousand shares back in 2012.
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Roland Rick Perry
Managing Director
Institutional Analyst Inc.
310-594-8062
roland@internetstockreview.com
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